Makena Resort, Maui, Hawaii

In 2007, Peterson Economics was retained by Dowling Company to complete a detailed market and financial analysis evaluating the highest and best use of Makena Resort, a 25-year-old resort community occupying one of the most desirable oceanfront sites on Maui, but generating virtually no income or other ongoing profits for the prior landowner. Dowling Company was in the midst of determining whether to bid for the resort and, if successful, how to redevelop and reposition the project in the market.

Maluaka, a new, ultra-high-end oceanfront condominium community on Maui

Based on a detailed market analysis and on our industry experience, Peterson Economics concluded that the project’s value would be maximized by demolishing the existing oceanfront hotel — a 310-room resort hotel — and repositioning the entire 1,800-acre site as Hawaii’s finest second-home community, centered around the finest beach club in the western hemisphere, a high-end spa and fitness center, two private golf courses, and an intimate, lodge (serving members, guests, and prospective buyers). Dowling Company and Morgan Stanley subsequently closed on the property in June 2007 for a price of $575 million and adopted Peterson Economics’ recommendations.

Maluaka, a new, ultra-high-end oceanfront condominium community on Maui

Maluaka, a new, ultra-high-end oceanfront condominium community on Maui

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